Brazil's Equatorial only bidder for strategic role in utility Sabesp, local media says (updated)

Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP

27/06/2024 24:32

(Adds details on Aegea in paragraphs 3-5)
       June 26 (Reuters) - Brazilian power company Equatorial
 EQTL3.SA  was the only bidder for a strategic role in water
utility Sabesp  SBSP3.SA , which is currently under a
privatization process, reported local newspaper Valor Economico
on Wednesday, citing sources.
    Sao Paulo intends to privatize Sabesp through an unusual
two-part share offer, maintaining a non-controlling stake, and
selecting what it is calling a "strategic investor" to take a
15% stake in the firm and hold the shares at least until the end
of 2029.
    According to the report, another firm that had been
interested in the privatization deal, sanitation company Aegea,
gave up on the transaction due to a "poison pill" included in
the deal to prevent the risk of a hostile takeover.
    Citing sources, the report said that amid rumors of Aegea
stepping out, Equatorial might have presented a less ambitious
proposal to Sabesp, although no further details were given.
    Equatorial said it does not talk about specific deal
possibilities in answer to a Reuters request for comment. Aegea
did not immediately respond.
    Sao Paulo state, which is leading Sabesp's privatization
process, said that finalists eligible for the role of strategic
investor will only be unveiled on Friday.    

 (Reporting by Andre Romani and Luana Maria Benedito; Editing by
Stephen Coates)
 ((LuanaMaria.Benedito@thomsonreuters.com; +551156447723;))